The Bombay excessive courtroom (HC) on Monday rejected an interim plea by Dish TV India Ltd promoter entity World Crest Advisors, in search of to forestall Sure Financial institution Ltd and JC Flowers Asset Reconstruction Pvt. Ltd from transferring or encumbering Dish TV shares.
“In gentle of prima facie discovering, that JC Flowers, presently registered as useful proprietor, is having all of the rights, advantages and liabilities connected to the securities held by depository and together with voting rights, in addition to the prima facie discovering that no case of fraud has been established by the plaintiff, the interim reduction hunted for within the current utility can’t be granted,” stated a bench led by Justice R.I. Chagla.
World Crest, which has a 0.05% stake (950,000 shares) in Dish TV, had filed a plea earlier than the courtroom in search of possession of over 440 million shares of Dish TV.
Sure Financial institution, nevertheless, asserted that these shares had been pledged as collateral to Catalyst Trusteeship, a safety trustee, by 5 companies, together with World Crest, to safe time period loans. At current, Sure Financial institution, by means of JC Flowers, holds a 24.19% stake in Dish TV. Sure Financial institution additionally stated it was the rightful proprietor of the shares and sought to train related rights. In its lawsuit, World Crest alleged that Catalyst colluded with the lender, facilitating the switch of shares to itself and subsequently to the financial institution.
Nevertheless, Sure Financial institution argued that it held the shares by advantage of loans taken by sure different promoters, for which Catalyst served as a safety trustee. It stated that because the loans weren’t repaid, the shares had been transferred to the financial institution.
In its plea, World Crest additionally alleged fraud by Sure Financial institution, citing studies from investigating authorities. Nevertheless, the HC stated World Crest had failed to supply substantial evidences in assist of its claims, as a substitute counting on the complaints filed with investigating authorities, affidavits from authorities and letters issued by them to assist its case alleging fraud.
“A closing report of an investigation officer is a mere opinion on materials collected by him, and the reality of the offence can solely be determined by a courtroom. I’m of the view that the plaintiff failed to determine a prima facie case of fraud,” the courtroom stated.
Earlier, too, the Supreme Courtroom had granted safety to Sure Financial institution in varied instances associated to the matter.
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Up to date: 05 Sep 2023, 12:06 AM IST
Supply: Live Mint